Buy-to-Let Mortgage Stress Test Calculator
Enter price, deposit, rent and a stressed rate to check the cover ratio.
Rent coverage at stress rate
β
Enter values above
Required rent
β
Surplus or shortfall
β
Stress-test interest
β
Loan to value
β
Verdict
β
Worked example
With the default inputs shown below, this calculator returns the following results:
| Input | Value |
|---|---|
| Property price ($) | 250000 |
| Deposit ($) | 60000 |
| Monthly rent ($) | 1100 |
| Stress-test rate (%) | 7 |
| Required rent coverage (%) | 125 |
| Monthly other costs ($) | 150 |
| Result | Value |
|---|---|
| Rent coverage at stress rate | 99.25% |
| Required rent | $1,385 |
| Surplus or shortfall | -$285 |
| Stress-test interest | $1,108.33 |
| Loan to value | 76.00% |
| Verdict | Fails |
Values shown are produced by this page in your browser; change any input to update them.
How to use the Buy-to-Let Mortgage Stress Test Calculator
- Property price ($) β default 250000
- Deposit ($) β default 60000
- Monthly rent ($) β default 1100
- Stress-test rate (%) β default 7
- Required rent coverage (%) β default 125
- Monthly other costs ($) β default 150
- Press Calculate to update the results instantly.
Frequently asked questions
Because the loan will still be outstanding if rates rise. Testing at 5.5β7% (or a margin above the pay rate) confirms the rent can absorb a rate shock without the borrower subsidising the mortgage.
Also called the interest cover ratio. A 125% requirement means the rent must be 1.25 times the stressed interest payment. Higher-rate taxpayers are usually assessed at 145%.
Increase the deposit to lower the loan, buy at a lower price, or find a property with a higher rent-to-price ratio. Borrowers can sometimes use other income to top up the shortfall.